From 29eaef515b355dc817d2a2e323a1e99d4b84671e Mon Sep 17 00:00:00 2001 From: PavelMakarchuk Date: Mon, 5 Oct 2026 12:44:58 -0400 Subject: [PATCH 1/2] Count pass-through, estate and Schedule F income in Arkansas gross income AR1000F line 19 covers partnership, S corporation, estate and trust income reported on Schedule E, and line 20 is Schedule F farm income. Add partnership_s_corp_income, estate_income and farm_operations_income to both Arkansas gross income source lists in every period. Fixes #9793. Co-Authored-By: Claude Opus 5.5 --- .../ar-gross-income-pass-through.fixed.md | 1 + .../gross_income/sources/individual.yaml | 20 ++++-- .../income/gross_income/sources/joint.yaml | 20 ++++-- .../ar/tax/income/ar_gross_income_indiv.yaml | 62 +++++++++++++++++++ 4 files changed, 95 insertions(+), 8 deletions(-) create mode 100644 changelog.d/ar-gross-income-pass-through.fixed.md diff --git a/changelog.d/ar-gross-income-pass-through.fixed.md b/changelog.d/ar-gross-income-pass-through.fixed.md new file mode 100644 index 00000000000..64a3ca31cb4 --- /dev/null +++ b/changelog.d/ar-gross-income-pass-through.fixed.md @@ -0,0 +1 @@ +Count partnership and S corporation, estate and trust, and Schedule F farm income in Arkansas gross income (AR1000F lines 19 and 20). diff --git a/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/individual.yaml b/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/individual.yaml index d7d5f35a8b8..265ced76d80 100644 --- a/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/individual.yaml +++ b/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/individual.yaml @@ -15,7 +15,10 @@ values: - taxable_pension_income # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - farm_rent_income # Line 20 + - partnership_s_corp_income # Line 19 + - estate_income # Line 19 + - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E + - farm_operations_income # Line 20, Schedule F # Act 141 of 2017 added unemployment compensation to gross income for tax # years beginning on or after January 1, 2018. Act 154 of 2021 then exempted # it for calendar years 2020 and 2021, after which it is taxable again. @@ -33,7 +36,10 @@ values: - taxable_pension_income # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - farm_rent_income # Line 20 + - partnership_s_corp_income # Line 19 + - estate_income # Line 19 + - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E + - farm_operations_income # Line 20, Schedule F - unemployment_compensation # Line 21 2020-01-01: - irs_employment_income # Line 8 @@ -49,7 +55,10 @@ values: - taxable_pension_income # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - farm_rent_income # Line 20 + - partnership_s_corp_income # Line 19 + - estate_income # Line 19 + - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E + - farm_operations_income # Line 20, Schedule F 2022-01-01: - irs_employment_income # Line 8 - self_employment_income # Line 8 @@ -68,7 +77,10 @@ values: - keogh_distributions # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - farm_rent_income # Line 20 + - partnership_s_corp_income # Line 19 + - estate_income # Line 19 + - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E + - farm_operations_income # Line 20, Schedule F - unemployment_compensation # Line 21 metadata: diff --git a/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/joint.yaml b/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/joint.yaml index 4ab038de44b..f0ee1164a15 100644 --- a/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/joint.yaml +++ b/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/joint.yaml @@ -15,7 +15,10 @@ values: - taxable_pension_income # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - farm_rent_income # Line 20 + - partnership_s_corp_income # Line 19 + - estate_income # Line 19 + - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E + - farm_operations_income # Line 20, Schedule F # Act 141 of 2017 added unemployment compensation to gross income for tax # years beginning on or after January 1, 2018. Act 154 of 2021 then exempted # it for calendar years 2020 and 2021, after which it is taxable again. @@ -33,7 +36,10 @@ values: - taxable_pension_income # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - farm_rent_income # Line 20 + - partnership_s_corp_income # Line 19 + - estate_income # Line 19 + - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E + - farm_operations_income # Line 20, Schedule F - unemployment_compensation # Line 21 2020-01-01: - irs_employment_income # Line 8 @@ -49,7 +55,10 @@ values: - taxable_pension_income # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - farm_rent_income # Line 20 + - partnership_s_corp_income # Line 19 + - estate_income # Line 19 + - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E + - farm_operations_income # Line 20, Schedule F 2022-01-01: - irs_employment_income # Line 8 - self_employment_income # Line 8 @@ -68,7 +77,10 @@ values: - keogh_distributions # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - farm_rent_income # Line 20 + - partnership_s_corp_income # Line 19 + - estate_income # Line 19 + - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E + - farm_operations_income # Line 20, Schedule F - unemployment_compensation # Line 21 metadata: diff --git a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/ar_gross_income_indiv.yaml b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/ar_gross_income_indiv.yaml index e77451e2317..fa3e75f843a 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/ar_gross_income_indiv.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/ar_gross_income_indiv.yaml @@ -160,3 +160,65 @@ output: ar_gross_income_indiv: 33_000 ar_gross_income_joint: 33_000 + +- name: Arkansas gross income includes partnership and S corporation income (AR1000F line 19) + period: 2024 + input: + irs_employment_income: 50_000 + partnership_s_corp_income: 20_000 + state_code: AR + output: + ar_gross_income_indiv: 70_000 + ar_gross_income_joint: 70_000 + +- name: Arkansas gross income nets a partnership or S corporation loss as reported on Schedule E + period: 2024 + input: + irs_employment_income: 50_000 + partnership_s_corp_income: -10_000 + state_code: AR + output: + ar_gross_income_indiv: 40_000 + ar_gross_income_joint: 40_000 + +- name: Arkansas gross income includes estate and trust income (AR1000F line 19) + period: 2024 + input: + irs_employment_income: 50_000 + estate_income: 20_000 + state_code: AR + output: + ar_gross_income_indiv: 70_000 + ar_gross_income_joint: 70_000 + +- name: Arkansas gross income includes Schedule F farm income (AR1000F line 20) + period: 2024 + input: + irs_employment_income: 50_000 + farm_operations_income: 20_000 + state_code: AR + output: + ar_gross_income_indiv: 70_000 + ar_gross_income_joint: 70_000 + +- name: Arkansas tax on wages plus S corporation income matches TAXSIM + # TAXSIM (taxsimtest, October 2026 build) input: year 2024, state 4, + # single, age 40, pwages 50000, scorp 20000, opt1 30, opt1v 1. + # TAXSIM reports state AGI 70,000 and siitax 2,197.15. + period: 2024 + absolute_error_margin: 0.01 + input: + people: + person1: + age: 40 + employment_income: 50_000 + partnership_s_corp_income: 20_000 + tax_units: + tax_unit: + members: [person1] + households: + household: + members: [person1] + state_code: AR + output: + ar_income_tax: 2_197.15 From 430e30dd0392fd1cc4d6cd88a226b7e4b2af840a Mon Sep 17 00:00:00 2001 From: PavelMakarchuk Date: Mon, 5 Oct 2026 13:51:06 -0400 Subject: [PATCH 2/2] Leave partnership/S-corp income to #9585; keep estate and Schedule F income PolicyEngine/policyengine-us#9585 already adds partnership_s_corp_income to Arkansas line 19. Drop it here to avoid duplicate work, and keep the parts #9585 does not cover: estate_income (line 19) and farm_operations_income (line 20, Schedule F). Co-Authored-By: Claude Opus 5.5 --- .../ar-gross-income-pass-through.fixed.md | 2 +- .../gross_income/sources/individual.yaml | 4 -- .../income/gross_income/sources/joint.yaml | 4 -- .../ar/tax/income/ar_gross_income_indiv.yaml | 41 ------------------- 4 files changed, 1 insertion(+), 50 deletions(-) diff --git a/changelog.d/ar-gross-income-pass-through.fixed.md b/changelog.d/ar-gross-income-pass-through.fixed.md index 64a3ca31cb4..32f631b07dc 100644 --- a/changelog.d/ar-gross-income-pass-through.fixed.md +++ b/changelog.d/ar-gross-income-pass-through.fixed.md @@ -1 +1 @@ -Count partnership and S corporation, estate and trust, and Schedule F farm income in Arkansas gross income (AR1000F lines 19 and 20). +Count estate and trust income (AR1000F line 19) and Schedule F farm income (line 20) in Arkansas gross income. diff --git a/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/individual.yaml b/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/individual.yaml index 265ced76d80..4d192dde4e8 100644 --- a/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/individual.yaml +++ b/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/individual.yaml @@ -15,7 +15,6 @@ values: - taxable_pension_income # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - partnership_s_corp_income # Line 19 - estate_income # Line 19 - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E - farm_operations_income # Line 20, Schedule F @@ -36,7 +35,6 @@ values: - taxable_pension_income # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - partnership_s_corp_income # Line 19 - estate_income # Line 19 - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E - farm_operations_income # Line 20, Schedule F @@ -55,7 +53,6 @@ values: - taxable_pension_income # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - partnership_s_corp_income # Line 19 - estate_income # Line 19 - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E - farm_operations_income # Line 20, Schedule F @@ -77,7 +74,6 @@ values: - keogh_distributions # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - partnership_s_corp_income # Line 19 - estate_income # Line 19 - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E - farm_operations_income # Line 20, Schedule F diff --git a/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/joint.yaml b/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/joint.yaml index f0ee1164a15..6b2b31ccd5d 100644 --- a/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/joint.yaml +++ b/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/joint.yaml @@ -15,7 +15,6 @@ values: - taxable_pension_income # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - partnership_s_corp_income # Line 19 - estate_income # Line 19 - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E - farm_operations_income # Line 20, Schedule F @@ -36,7 +35,6 @@ values: - taxable_pension_income # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - partnership_s_corp_income # Line 19 - estate_income # Line 19 - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E - farm_operations_income # Line 20, Schedule F @@ -55,7 +53,6 @@ values: - taxable_pension_income # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - partnership_s_corp_income # Line 19 - estate_income # Line 19 - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E - farm_operations_income # Line 20, Schedule F @@ -77,7 +74,6 @@ values: - keogh_distributions # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - partnership_s_corp_income # Line 19 - estate_income # Line 19 - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E - farm_operations_income # Line 20, Schedule F diff --git a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/ar_gross_income_indiv.yaml b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/ar_gross_income_indiv.yaml index fa3e75f843a..0b095676ec0 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/ar_gross_income_indiv.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/ar_gross_income_indiv.yaml @@ -161,26 +161,6 @@ ar_gross_income_indiv: 33_000 ar_gross_income_joint: 33_000 -- name: Arkansas gross income includes partnership and S corporation income (AR1000F line 19) - period: 2024 - input: - irs_employment_income: 50_000 - partnership_s_corp_income: 20_000 - state_code: AR - output: - ar_gross_income_indiv: 70_000 - ar_gross_income_joint: 70_000 - -- name: Arkansas gross income nets a partnership or S corporation loss as reported on Schedule E - period: 2024 - input: - irs_employment_income: 50_000 - partnership_s_corp_income: -10_000 - state_code: AR - output: - ar_gross_income_indiv: 40_000 - ar_gross_income_joint: 40_000 - - name: Arkansas gross income includes estate and trust income (AR1000F line 19) period: 2024 input: @@ -201,24 +181,3 @@ ar_gross_income_indiv: 70_000 ar_gross_income_joint: 70_000 -- name: Arkansas tax on wages plus S corporation income matches TAXSIM - # TAXSIM (taxsimtest, October 2026 build) input: year 2024, state 4, - # single, age 40, pwages 50000, scorp 20000, opt1 30, opt1v 1. - # TAXSIM reports state AGI 70,000 and siitax 2,197.15. - period: 2024 - absolute_error_margin: 0.01 - input: - people: - person1: - age: 40 - employment_income: 50_000 - partnership_s_corp_income: 20_000 - tax_units: - tax_unit: - members: [person1] - households: - household: - members: [person1] - state_code: AR - output: - ar_income_tax: 2_197.15